Single-family home sales were impacted by the weather more than usual in 2018, as compared to any other year in recent history. The unprecedented three back-to-back Nor’easters reeked havoc with buyers and further stalled a market already hampered by an unusually damp and dismal winter. Coupled with the uncertainty of the impact of the 2018 tax reform and we are seeing a very slow start to 2018.
Overall, we have seen 47 homes sell in the first quarter of 2018 compared to 61 in 2017. The median price showed an increase 3.5% up from $606,000 in 2017 to $627,500 in 2018. Total sales volume is also down registering at just under $31 million from almost $44 million at this time last year.
Market inventory is slightly decreased with an average of 209 properties for sale as compared to 265 last year. This may be due to the problems with the weather as sellers hold off for a more favorable time to list their homes for sale. However, for properties that do list, the average number of days a home is spending on the market has decreased from 209 in 2017 to 175 this year.
In condo news, the number of sales is up slightly from 12 sales in 2017 to 15 this year. Similarly, the median sales price increased from $217,000 to $230,000.
Looking forward to spring, there is encouraging news with 38 properties currently under agreement and 37 already in contract. We are also seeing an uptick in the number of listings entering the market on a daily basis, providing a much-needed influx of inventory. As seen below, typically most homes tend to close in Q2 and Q3, with deposits taken in Q1 and Q2. Due to the weather, there may be a shift this year to more homes closing in the summer rather than the later spring months.
Rising interest rates should also favorably impact our peak selling months of April, May and June as people jump into the market and maximize their buying power. In-town properties continue to experience the most foot traffic and showings. As a result a number of these sales have resulted in multiple offers, which is a positive sign for a strong second quarter.
Below is a snapshot of the first quarter market broken down by price.